L.S. 370.28 Regolamenti dwar l-Att dwar Servizzi ta’ Investiment (Aċċess għall-Irkantar ta’ Kwoti ta’ Emissjonijiet)

(1)The title of these regulations is the Investment Services Act (Access to Emissions Allowance Auction) Regulations. Citation and scope.

(2)The purpose of these regulations is to implement Articles 18

(2), 18

(3)and 59 of Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowances trading within the Community, as may be amended from time to time. 2.

(1)In these regulations, unless the context otherwise requires "the Act" means the Investment Services Act; Interpretation. Cap. 370. "Auctioning Regulation" means Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowances trading within the Community, as may be amended from time to time; "auctions" means the auctioning of emission allowances held in accordance with the Auctioning Regulation; "exempt person" means a person dealing on own account in financial instruments in terms of paragraph 3 of the First Schedule to the Act or providing investment services in the commodity derivatives or derivative contracts included in Schedule 2 of the Act to the clients of its main business, where such activity is ancillary to its main business, when considered on a group basis; and (a) that main business is not the provision of investment services within the meaning of the Act or the provision of banking services under the Banking Act, and (b) the person is exempt from the requirement of an investment services licence in terms of the Investment Services Act (Exemption) Regulations.

(2)Words and expressions used in the Act shall, in these regulations, have the same meaning as is assigned to them in the Act. Cap.

1. S.L. 370.02 2 [ S.L.370.28 Competent authority. Cap.
2. Applicability of the EU Regulation to the competent authority. INVESTMENT SERVICES ACT (ACCESS TO EMISSIONS ALLOWANCE AUCTION)
3. The Malta Financial Services Authority established by the Malta Financial Services Authority Act shall be the designated competent authority in Malta for the purposes of implementing the r e l e v a n t p ro v is i on s of th e A uct i on in g R e g ul a t io n , an d a n y reference in these regulations to the competent authority shall be read and construed accordingly. 4.

(1)The competent authority shall exercise all the f u n c t i o n s , o b l i ga t i o ns an d po w e r s an d s h a l l s a t i s f y al l t he requirements imposed on competent authorities by the Auctioning Regulation.

(2)Without prejudice to sub-regulation

(1), the competent authority may, for the better implementation of the Auctioning Regulation, exercise any of the powers assigned to it under the Act in relation to persons engaged in bidding in emission allowance auctions. Investment Services Rules. 5. For the better carrying out of the provisions of the Auctioning Regulation and of these regulations, the competent authority may, from time to time, issue and publish Investment Services Rules wh ich shall be bindin g on all holders of an investment services licence and exempt persons authorised pursuant to these regulations, which are engaged in bidding in auctions. Such rules may lay down additional requirements and conditions, and any other matters as the competent authority may consider appropriate including: (

1. a)the operation of the Auctioning Regulation or of these regulations; (
2. b)any matter relating to the functions, obligations and powers of the competent authority under the Auctioning Regulation; and (
3. c)any other matter arising in connection with the Auctioning Regulation or these regulations. Admission to bid by investment services licence holders for products that are not financial instruments. 6. A holder of an investment services licence shall be eligible to apply for admission to bid directly in emission allowance auctions on behalf of its clients when such bidding is for products that are not financial instruments, on the condition that it is authorised by the competent authority in terms of these regulations. Admission to bid by exempt persons for products that are financial instruments and products that are not financial instruments. 7. An exempt person shall be eligible to apply for admission to bid directly in emission allowance auctions either on its own account or on behalf of clients when such bidding is both for products that are financial instruments within the meaning of the Second Schedule to the Act and for products that are not financial instruments, on the condition that it is authorised by the competent authority. Application for authorisation. 8. An application for authorisation in terms of regulations 6 and 7 shall be made to the competent authority in writing and shall be accompanied by such documents as the competent authority may specify. Conditions of authorisation. 9. The competent authority shall not grant authorisation in terms of these regulations unless the applicant: INVESTMENT SERVICES ACT (ACCESS TO EMISSIONS ALLOWANCE AUCTION) [ S.L.370.28 (
4. a)is of sufficient good repute and sufficiently experienced as to ensure proper respect of the conduct rules provided for in the Investment Services Rules issued by the competent authority for this purpose; (
5. b)has in place the necessary processes and checks to manage conflicts of interest and serve the best interests of its clients; (
6. c)complies with the requirements of the Prevention of Money Laundering and Funding of Terrorism Regulations, and any regulations and guidance notes issued thereunder; and S.L. 373.01 (
7. d)complies with any other measures deemed necessary, having regard to the nature of the bidding services being offered and the level of sophistication of the clients in terms of its investor or trading profile as well as any risk-based assessment of the likelihood of money laundering, terrorist financing or criminal activity. 10. The competent authority may withdraw an authorisation granted in terms of these regulations where: Withdrawal of authorisation. (
8. a)the holder thereof no longer fulfils the conditions of authorisation or has contravened any of the conditions of authorisation; (
9. b)the holder thereof, or a person acting on its behalf, has furnished the competent authority with information which is false, inaccurate or misleading; (
10. c)authorisation has been obtained through statements or by other irregular means; or false (
11. d)the holder thereof has seriously and systematically infringed any Investment Services Rules issued in terms of regulation 5. 11. Where a person contravenes any of the provisions of these regulations, the competent authority may, by notice in writing and without recourse to a court hearing, impose on such person an administrative penalty not exceeding one hundred and fifty thousand euro (€150,000). Administrative penalties. 12. A right of appeal to the Financial Services Tribunal shall lie from a decision of the competent authority to: Appeals. (
12. a)reject an application for authorisation made in terms of these regulations; (
13. b)withdraw an authorisation in terms of regulation 10; or (
14. c)impose a penalty in terms of regulation 11. 3